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Knowledge base

Results: 54

Level of proficiency

Beginner Intermediate Advanced

Topic

Commodities Crypto Forex Macro Basics Stocks and Indices

Results: 54

Glossary

Trading terms

View all terms
Bitcoin

Bitcoin is a cryptocurrency created in 2009, based mainly on a self-published paper by Satoshi Nakamoto. Bitcoin enables immediate payments (and micropayments) at a very low cost, while avoiding the need for central authorities and issuers.

Leverage

Leverage allows traders to control a larger market position by using margin, which is only a fraction of the total trade value. For example, with 1:100 leverage, $1,000 in margin can control a $100,000 position. While leverage increases market exposure, it also amplifies both potential gains and potential losses, making risk management essential when trading with leverage on platforms like SimpleFX.

Spread

The difference between a financial instrument's bid and ask prices is known as the spread. It shows how much it costs to execute a trade and is expressed in points for other markets or pips for FX. Tighter spreads indicate higher liquidity and lower trading costs, making them a key factor when comparing brokers like SimpleFX.

Margin

Margin is the minimum capital required to open and maintain a leveraged trading position. It is expressed as a percentage of the total trade value and acts as collateral against potential losses. For example, a 1% margin requirement means you need $1,000 to control a $100,000 position. If equity falls below required levels, a margin call may occur.

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8TECH LTD authorized and supervised by the Financial Services Commission in Mauritius licence number GB23201604. Office Address: 18 Bank Street Ground Floor, Silver Bank Tower Cybercity, Ebene, Mauritius. 8TECH LTD does not provide any Fiat Exchange Services nor Cryptocurrency exchange services. 8TECH LTD does not support cryptocurrency trading accounts nor cryptocurrency deposits.

8TECH ZA (PTY) LTD a Crypto Assets Service Provider and FSP with License No 53073 Authorized by the Financial Sector Conduct Authority (FSCA), Office address: 4 Haven Lane Malvern Queensburgh Durban Kwa-Zulu Natal 4093, South Africa. 8TECH ZA (PTY) LTD offers cryptocurrency deposits and supports cryptocurrency trading accounts based on the FSCA license No 53073 with crypto assets subcategory.

8TECH PA LLC licensed by the Kuna de Wargandí International Services Authority (KUNAISA) under FOREX Licence No. FX0032026 and VASP Licence No. V0042026, with company number 0004-IBC-2026 and its registered address at Central Street, Kunaisa Bldg., Nurrá-Wala-Mortí, Kuna de Wargandí Territory, Republic of Panama. 8TECH PA LLC is the owner of the website SimpleFX: Free trading & investing platform.

SimpleFX Group is not authorized by any EU authority, EEA National Competent Authority or the United Kingdom. SimpleFX services are outside the EU and the UK regulatory framework. You will not be covered by the Investor Compensation Fund.

The information on this website does not constitute, nor should it be construed or understood as an inducement or solicitation to engage in any investment or trading activity and is not intended as a marketing or promotion of the SimpleFX services to citizens of the EU, the EEA or the UK.

SimpleFX Group does not provide services to citizens and residents of the United States or any country where such distribution or use would be contrary to local law or regulation.

RISK WARNING

Margin trading in foreign currency, virtual assets or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances.

CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Tax may be payable on any profits and you should seek independent advice on your taxation position.

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